1 00:00:02,540 --> 00:00:04,840 thank you , Jim , Like Jim mentioned , 2 00:00:04,850 --> 00:00:06,572 I'm curious Smith with Parsons 3 00:00:06,572 --> 00:00:08,461 Corporation . It's my pleasure to 4 00:00:08,461 --> 00:00:11,410 introduce our first speaker today . The 5 00:00:11,410 --> 00:00:13,470 honorable Ellen M . Lord currently 6 00:00:13,470 --> 00:00:16,240 serves as undersecretary of defense for 7 00:00:16,240 --> 00:00:19,030 acquisition and sustainment . In this 8 00:00:19,030 --> 00:00:21,340 capacity , she's responsible to the 9 00:00:21,340 --> 00:00:23,990 Secretary of defense for all matters 10 00:00:23,990 --> 00:00:26,420 pertaining to acquisition , development , 11 00:00:26,420 --> 00:00:29,190 testing , contract , administration , 12 00:00:29,480 --> 00:00:31,830 logistics , the material readiness , 13 00:00:32,010 --> 00:00:33,843 installations and environments , 14 00:00:34,140 --> 00:00:36,560 operational energy , chemical , 15 00:00:36,560 --> 00:00:39,360 biological and nuclear weapons , the 16 00:00:39,360 --> 00:00:41,820 acquisition workforce and the defense 17 00:00:41,820 --> 00:00:45,170 industrial base . Now , please join me 18 00:00:45,320 --> 00:00:47,650 and give him a warm welcome to Miss 19 00:00:47,660 --> 00:00:50,650 Ellen . Lord Lord over Teoh . 20 00:00:51,540 --> 00:00:53,707 Good morning and thank you . Carry for 21 00:00:53,707 --> 00:00:55,707 the introduction . The Professional 22 00:00:55,707 --> 00:00:58,750 Services Council is such a valued 23 00:00:58,760 --> 00:01:01,720 industry partner in addressing key 24 00:01:01,720 --> 00:01:04,240 issues , facing government and industry 25 00:01:04,450 --> 00:01:06,850 to deliver on the national defense 26 00:01:06,850 --> 00:01:09,250 strategy that guides all that we dio 27 00:01:09,540 --> 00:01:12,010 Defense services contractors are 28 00:01:12,010 --> 00:01:14,050 essential to supporting our troops 29 00:01:14,090 --> 00:01:16,170 around the world with commercial 30 00:01:16,170 --> 00:01:18,820 innovation . So I am really delighted 31 00:01:18,820 --> 00:01:21,330 to be able to address the Professional 32 00:01:21,330 --> 00:01:24,430 Services Council and the PSC Defense 33 00:01:24,430 --> 00:01:27,100 Conference audience here today and I'd 34 00:01:27,100 --> 00:01:29,211 like to take this opportunity to give 35 00:01:29,211 --> 00:01:31,670 you an overview and an update on some 36 00:01:31,670 --> 00:01:34,120 of the initiatives we have going on in 37 00:01:34,120 --> 00:01:37,290 an s right now , including where we are 38 00:01:37,290 --> 00:01:39,710 with the adaptive acquisition framework , 39 00:01:39,820 --> 00:01:41,709 particularly with the lens of our 40 00:01:41,709 --> 00:01:45,550 software policy . Section 889 Section 41 00:01:45,550 --> 00:01:49,310 36 10 CMC and Small Business 42 00:01:49,310 --> 00:01:52,920 Group . A major accomplishment in 43 00:01:52,920 --> 00:01:56,780 2019 was the rewrite of the 5000 44 00:01:56,780 --> 00:01:58,800 Siri's , which is the overarching 45 00:01:58,800 --> 00:02:01,550 policy guide on D . O D . Acquisition . 46 00:02:01,890 --> 00:02:03,500 This overhaul is the most 47 00:02:03,500 --> 00:02:05,770 transformational change toe acquisition 48 00:02:05,770 --> 00:02:08,400 policy in years and an effort that we 49 00:02:08,400 --> 00:02:11,230 expect toe have a long lasting positive 50 00:02:11,230 --> 00:02:14,270 effect . The 5000 rewrite was the 51 00:02:14,270 --> 00:02:16,600 decomposition of a large policy 52 00:02:16,600 --> 00:02:19,230 document into six clear , separate 53 00:02:19,230 --> 00:02:21,340 pathways known as the Adoptive 54 00:02:21,350 --> 00:02:24,200 Acquisition Framework , or A F because 55 00:02:24,200 --> 00:02:27,380 we always eat acronyms at D o D . So 56 00:02:27,390 --> 00:02:30,970 the six a F pathways include urgent 57 00:02:30,970 --> 00:02:33,650 capability , acquisition , middle tier 58 00:02:33,650 --> 00:02:36,330 of acquisition , major capability , 59 00:02:36,330 --> 00:02:38,890 acquisition , software acquisition , 60 00:02:39,030 --> 00:02:41,070 defense business systems and 61 00:02:41,070 --> 00:02:43,590 acquisition of services . These 62 00:02:43,590 --> 00:02:46,530 pathways simplify and Taylor in 63 00:02:46,540 --> 00:02:48,890 acquisition approaches and power 64 00:02:48,890 --> 00:02:51,790 program managers facilitate data driven 65 00:02:51,790 --> 00:02:55,120 analysis , actively managed risks and 66 00:02:55,130 --> 00:02:57,810 emphasized sustainment . This new 67 00:02:57,810 --> 00:02:59,866 approach will streamline traditional 68 00:02:59,866 --> 00:03:02,360 acquisition process , is providing our 69 00:03:02,360 --> 00:03:05,200 combatant commands and warfighters with 70 00:03:05,200 --> 00:03:07,190 greater lethality on the modern 71 00:03:07,190 --> 00:03:10,430 battlefield . Simply said . It allows 72 00:03:10,430 --> 00:03:12,650 program managers and contracting 73 00:03:12,650 --> 00:03:15,210 officers multiple ways to field 74 00:03:15,220 --> 00:03:18,030 capability much faster , which is where 75 00:03:18,030 --> 00:03:21,600 our job really is . So the acquisition 76 00:03:21,600 --> 00:03:24,140 policy rewrite includes D O D . 77 00:03:24,140 --> 00:03:26,590 Instructions for each acquisition 78 00:03:26,590 --> 00:03:29,650 pathway and functional area . The's 79 00:03:29,650 --> 00:03:31,960 subordinate functional areas are 80 00:03:32,150 --> 00:03:34,980 engineering test and evaluation . 81 00:03:35,090 --> 00:03:37,980 Cybersecurity , which is new analysis 82 00:03:37,990 --> 00:03:40,350 of alternatives classed estimate 83 00:03:41,240 --> 00:03:43,462 intellectual property , which is new as 84 00:03:43,462 --> 00:03:46,350 well . Tech and program protection , 85 00:03:46,740 --> 00:03:49,900 human systems integration , Acquisition 86 00:03:49,900 --> 00:03:52,470 intelligence Again , another new area 87 00:03:52,480 --> 00:03:55,400 and information technology . I'd like 88 00:03:55,400 --> 00:03:57,710 to focus for a moment on the progress 89 00:03:57,710 --> 00:03:59,321 we've made with the adaptive 90 00:03:59,321 --> 00:04:01,510 acquisition framework through the lens 91 00:04:01,520 --> 00:04:04,250 of our software pathway in May 92 00:04:04,250 --> 00:04:07,700 2019 and s formally delivered the 93 00:04:07,700 --> 00:04:10,200 Defense Innovation Boards , software 94 00:04:10,210 --> 00:04:13,100 acquisition practices or swap study to 95 00:04:13,100 --> 00:04:15,910 Congress . Following that report . The 96 00:04:15,910 --> 00:04:18,850 swap strategy is being implemented by D . 97 00:04:18,850 --> 00:04:20,910 O d software modernization working 98 00:04:20,910 --> 00:04:23,090 groups , and there's significant 99 00:04:23,090 --> 00:04:25,720 forward progress with respect to policy 100 00:04:25,920 --> 00:04:29,000 processes , enterprise services and 101 00:04:29,000 --> 00:04:31,870 workforce , for example , an interim 102 00:04:31,870 --> 00:04:34,680 policy memo was issued in January to 103 00:04:34,680 --> 00:04:36,736 provide D . O . D . With a preferred 104 00:04:36,736 --> 00:04:38,800 pathway for acquiring software based 105 00:04:38,800 --> 00:04:41,740 capabilities . The pathway enables 106 00:04:41,740 --> 00:04:44,610 acquisition programs to transition , to 107 00:04:44,610 --> 00:04:47,290 use modern software methodologies and 108 00:04:47,290 --> 00:04:49,990 to deliver software capabilities at the 109 00:04:49,990 --> 00:04:53,240 speed of relevance . We're on track to 110 00:04:53,240 --> 00:04:55,930 replace the interim policy with D o D . 111 00:04:55,930 --> 00:04:59,230 Instruction 5000 dot upu p is a 112 00:04:59,230 --> 00:05:01,500 placeholder until we actually issue it 113 00:05:01,510 --> 00:05:03,900 and get a number there . This is the 114 00:05:03,900 --> 00:05:06,360 operation of the software acquisition 115 00:05:06,360 --> 00:05:08,416 pathway . We're gonna do this by the 116 00:05:08,420 --> 00:05:11,350 end of 2020 . The draft D o d 117 00:05:11,350 --> 00:05:13,810 Instruction or Dodi is nearing the end 118 00:05:13,810 --> 00:05:16,560 of coordination with the components and 119 00:05:16,570 --> 00:05:20,040 OSD functional staff . Draft guidance . 120 00:05:20,040 --> 00:05:22,020 Supporting this pathway has been 121 00:05:22,020 --> 00:05:24,360 populated on the Adaptive Acquisition 122 00:05:24,360 --> 00:05:27,480 Framework website and my organization 123 00:05:27,680 --> 00:05:29,980 Acquisition Enablers is working with 124 00:05:29,980 --> 00:05:32,800 senior leaders and programs across the 125 00:05:32,800 --> 00:05:36,630 services to enable adoption . The 126 00:05:36,630 --> 00:05:38,880 policy will reflect a substantial 127 00:05:38,880 --> 00:05:41,400 departure from the usual way of doing 128 00:05:41,400 --> 00:05:44,500 business in D . O . D . The policy is 129 00:05:44,500 --> 00:05:46,840 rooted in lessons being learned from a 130 00:05:46,840 --> 00:05:49,380 set of agile software pilots , which 131 00:05:49,380 --> 00:05:51,550 are demonstrating that the department 132 00:05:51,560 --> 00:05:53,960 can be successful at delivering 133 00:05:53,960 --> 00:05:56,750 software capabilities to users and 134 00:05:56,750 --> 00:06:00,150 warfighters in a faster way with Sprint . 135 00:06:00,540 --> 00:06:03,170 Aside from implementing policy were 136 00:06:03,170 --> 00:06:05,080 establishing a plan for talent 137 00:06:05,080 --> 00:06:07,440 management of digital expertise and 138 00:06:07,440 --> 00:06:09,960 software professionals and a software 139 00:06:09,960 --> 00:06:13,390 talent management . Kadre , OSD 140 00:06:13,390 --> 00:06:16,320 Undersecretary offices and Defense 141 00:06:16,320 --> 00:06:19,190 Digital Services are working to stand 142 00:06:19,190 --> 00:06:21,730 up a leadership Kadre to establish and 143 00:06:21,730 --> 00:06:24,680 coordinate D . O D's talent management 144 00:06:24,680 --> 00:06:27,530 strategy . Additionally , the team has 145 00:06:27,530 --> 00:06:29,840 developed an initial plan to address 146 00:06:29,840 --> 00:06:32,220 the recruitment , development and 147 00:06:32,220 --> 00:06:34,980 retention of a civilian and military 148 00:06:34,980 --> 00:06:37,630 workforce with digital and software 149 00:06:37,630 --> 00:06:40,440 development expertise . We also 150 00:06:40,440 --> 00:06:42,760 envision civilian and military career 151 00:06:42,760 --> 00:06:45,760 tracks related to digital expertise and 152 00:06:45,760 --> 00:06:47,750 related digital competencies . 153 00:06:48,190 --> 00:06:50,430 Concurrently , we're focused on 154 00:06:50,430 --> 00:06:52,590 generating software development and 155 00:06:52,590 --> 00:06:54,450 training management programs , 156 00:06:54,840 --> 00:06:57,480 specifically a D . O D working group , 157 00:06:57,490 --> 00:06:59,940 with representatives from across D o D 158 00:06:59,940 --> 00:07:02,600 functional and the services are 159 00:07:02,600 --> 00:07:04,690 developing modern competencies to 160 00:07:04,690 --> 00:07:07,470 support modern software . Occupational 161 00:07:07,470 --> 00:07:10,230 Siri's training programs and career 162 00:07:10,230 --> 00:07:12,530 paths for D . O D . Leadership and 163 00:07:12,530 --> 00:07:15,850 software professionals in terms of our 164 00:07:15,850 --> 00:07:18,780 def . SEC Ops Enterprise Services , D . 165 00:07:18,780 --> 00:07:20,670 O . D released the def SEC Ops 166 00:07:20,670 --> 00:07:23,200 Reference design document outlining the 167 00:07:23,200 --> 00:07:25,940 preferred software practice for all D . 168 00:07:25,940 --> 00:07:28,370 O . D . Components and implementation 169 00:07:28,370 --> 00:07:30,810 and operational guidance for programs 170 00:07:30,810 --> 00:07:33,890 to create , deploy and operate software 171 00:07:33,900 --> 00:07:37,500 applications in a secure , flexible and 172 00:07:37,510 --> 00:07:40,240 interoperable banner . We're looking at 173 00:07:40,240 --> 00:07:44,060 budget activity Stash A be a Dash eight 174 00:07:44,060 --> 00:07:47,340 pilots . The swap study recommended a 175 00:07:47,340 --> 00:07:49,850 new budget activity for appropriating 176 00:07:49,850 --> 00:07:52,050 money for defense software , which 177 00:07:52,060 --> 00:07:54,720 better aligns to the interest and fast 178 00:07:54,730 --> 00:07:56,750 paced technical work related to 179 00:07:56,750 --> 00:07:59,410 software engineering . D . O . D . Is 180 00:07:59,420 --> 00:08:01,700 acting on this by establishing pilot 181 00:08:01,700 --> 00:08:04,380 programs to gather lessons learned and 182 00:08:04,380 --> 00:08:07,980 best practices to support a new budget 183 00:08:07,980 --> 00:08:10,220 activity , which provides funding 184 00:08:10,220 --> 00:08:12,490 flexibility for modern software 185 00:08:12,500 --> 00:08:15,500 acquisition programs . N s will work 186 00:08:15,500 --> 00:08:17,611 with the programs to test whether the 187 00:08:17,611 --> 00:08:20,550 single appropriation supports programs 188 00:08:20,650 --> 00:08:22,780 in quickly adapting fielded 189 00:08:22,780 --> 00:08:25,520 capabilities to changing mission needs 190 00:08:25,530 --> 00:08:27,430 and our dynamic cyber threat 191 00:08:27,440 --> 00:08:30,490 environment . Be a Pilot funding 192 00:08:30,560 --> 00:08:33,240 Realignment under our G , T and E B . A . 193 00:08:33,240 --> 00:08:35,760 08 has been supported in congressional 194 00:08:35,760 --> 00:08:39,310 mark ups so far . Finally , in terms of 195 00:08:39,310 --> 00:08:41,920 section 255 software S and T 196 00:08:41,920 --> 00:08:44,290 modernization , the swap study 197 00:08:44,290 --> 00:08:46,680 recommended that the department invest 198 00:08:46,680 --> 00:08:49,000 in the transition of emerging tools and 199 00:08:49,000 --> 00:08:51,500 methods for engineering mission quality 200 00:08:51,500 --> 00:08:54,580 software into practice and S is 201 00:08:54,580 --> 00:08:57,210 partnered with Arnie , the services and 202 00:08:57,210 --> 00:08:59,321 functional communities to develop the 203 00:08:59,321 --> 00:09:01,710 department strategy for bridging the 204 00:09:01,710 --> 00:09:04,190 Valley of Death as we all know it , 205 00:09:04,230 --> 00:09:07,960 that exists between promising ideas and 206 00:09:07,960 --> 00:09:10,770 practical application and to ensure 207 00:09:10,770 --> 00:09:12,920 greater success in rapidly 208 00:09:12,920 --> 00:09:15,640 transitioning innovative digital tech 209 00:09:15,830 --> 00:09:19,490 into our acquisition programs . We need 210 00:09:19,490 --> 00:09:22,500 software intensive programs or major 211 00:09:22,500 --> 00:09:24,850 software efforts within the other 212 00:09:24,850 --> 00:09:27,220 acquisition pathways to use the 213 00:09:27,220 --> 00:09:30,050 software pathway and provide feedback . 214 00:09:30,080 --> 00:09:32,260 While we're proud of the new software 215 00:09:32,260 --> 00:09:35,550 pathway as an organization , we need to 216 00:09:35,550 --> 00:09:38,270 continue to learn feedback to the 217 00:09:38,270 --> 00:09:40,850 acquisition enablers team is critical . 218 00:09:41,340 --> 00:09:43,900 Our intent has always been to reshape 219 00:09:43,900 --> 00:09:47,140 the 5000 to better support acquisition 220 00:09:47,140 --> 00:09:49,900 programs . Additionally , the new 221 00:09:49,900 --> 00:09:51,820 documents , like a streamlined 222 00:09:51,820 --> 00:09:54,230 capability , needs statement and user 223 00:09:54,230 --> 00:09:57,070 agreement need to be exercise so that 224 00:09:57,070 --> 00:09:59,050 we can collect and share lessons 225 00:09:59,050 --> 00:10:01,600 learned . Looking forward . Some 226 00:10:01,600 --> 00:10:04,220 particular challenging areas will 227 00:10:04,220 --> 00:10:06,510 include cost estimates , metrics , 228 00:10:06,510 --> 00:10:10,280 plans and value assessments . We have 229 00:10:10,280 --> 00:10:12,440 provided accompanying guidebooks to 230 00:10:12,440 --> 00:10:15,080 help programs in these areas , but we 231 00:10:15,080 --> 00:10:17,190 must transform how we do these 232 00:10:17,190 --> 00:10:19,300 activities . When it comes to modern 233 00:10:19,300 --> 00:10:22,170 software development , modern software 234 00:10:22,170 --> 00:10:23,940 development and the software 235 00:10:23,950 --> 00:10:27,000 acquisition pathway are much more than 236 00:10:27,000 --> 00:10:29,290 just a new approach to writing code . 237 00:10:29,600 --> 00:10:31,870 They are also a new way to interact 238 00:10:31,870 --> 00:10:34,030 with users , continually deliver 239 00:10:34,030 --> 00:10:36,850 capability on short intervals , achieve 240 00:10:36,850 --> 00:10:39,450 test driven development leverage 241 00:10:39,460 --> 00:10:42,470 enterprise services , automate and 242 00:10:42,480 --> 00:10:45,450 innovate in what we are calling biz ops . 243 00:10:45,840 --> 00:10:49,090 Biz Ops is the contracting financial 244 00:10:49,090 --> 00:10:51,480 management and program management that 245 00:10:51,480 --> 00:10:53,850 supports modern software development . 246 00:10:54,340 --> 00:10:56,910 We need to build a workforce with the 247 00:10:56,910 --> 00:10:59,640 software engineering skills needed to 248 00:10:59,640 --> 00:11:02,160 take full advantage of new software 249 00:11:02,160 --> 00:11:05,200 pathway and ensure program success . 250 00:11:05,640 --> 00:11:07,730 Recent efforts include the Defense 251 00:11:07,740 --> 00:11:10,130 Acquisition Universities effort in the 252 00:11:10,130 --> 00:11:12,540 past two fiscal years to train 253 00:11:12,550 --> 00:11:15,460 approximately 1400 personnel and 254 00:11:15,460 --> 00:11:19,050 credential . 559 employees in 255 00:11:19,050 --> 00:11:21,950 software practices , turning now to the 256 00:11:21,950 --> 00:11:25,250 topic of Section 889 Today is a 257 00:11:25,250 --> 00:11:27,540 particularly important day as the 258 00:11:27,550 --> 00:11:29,810 interim Federal Acquisition regulation 259 00:11:29,810 --> 00:11:33,430 or far rule on Section 89 a 260 00:11:33,430 --> 00:11:37,370 one b goes into effect . Section 889 of 261 00:11:37,370 --> 00:11:39,870 the national defense offers it . The 262 00:11:39,870 --> 00:11:42,180 National Defense Authorization Act , or 263 00:11:42,190 --> 00:11:45,270 ND A for F . Y . 2019 264 00:11:45,390 --> 00:11:47,710 establishes prohibitions related to 265 00:11:47,710 --> 00:11:49,920 certain telecommunications equipment 266 00:11:49,930 --> 00:11:52,300 and services from Wall Way Technologies 267 00:11:52,300 --> 00:11:55,700 Company and ZTE Corporation and their 268 00:11:55,700 --> 00:11:58,460 subsidiaries and affiliates . It also 269 00:11:58,460 --> 00:12:01,780 establishes prohibitions related Teoh 270 00:12:01,790 --> 00:12:04,720 certain video and telecommunications 271 00:12:04,720 --> 00:12:07,310 equipment or services produced or 272 00:12:07,310 --> 00:12:09,790 provided by High Terror Communications 273 00:12:09,790 --> 00:12:13,070 Corporation and many others , as well 274 00:12:13,070 --> 00:12:15,690 as their subsidiaries or affiliates . 275 00:12:16,140 --> 00:12:18,170 There are two specific prohibitions 276 00:12:18,170 --> 00:12:22,070 under section 889 Section 889 a 277 00:12:22,070 --> 00:12:24,460 one a . Prohibits the government from 278 00:12:24,460 --> 00:12:27,240 procuring any equipment , system or 279 00:12:27,240 --> 00:12:29,050 service that uses covered 280 00:12:29,050 --> 00:12:31,240 telecommunications equipment or 281 00:12:31,240 --> 00:12:34,290 services as a substantial or essential 282 00:12:34,290 --> 00:12:37,060 component of any system . This 283 00:12:37,060 --> 00:12:39,610 prohibition was implemented in the far 284 00:12:39,720 --> 00:12:42,780 VM via an interim rule in the Federal 285 00:12:42,780 --> 00:12:45,770 Register , which went into effect 286 00:12:45,780 --> 00:12:49,470 August 13 2019 . Section 287 00:12:49,480 --> 00:12:53,270 889 a one B prohibits contracting with 288 00:12:53,270 --> 00:12:55,760 an entity that uses any equipment , 289 00:12:55,790 --> 00:12:58,560 system or service that uses covered 290 00:12:58,560 --> 00:13:00,740 telecommunications equipment or 291 00:13:00,740 --> 00:13:03,760 services as a substantial or 292 00:13:03,760 --> 00:13:06,150 significant component of any system . 293 00:13:06,540 --> 00:13:09,150 Section 89 provides significant 294 00:13:09,150 --> 00:13:11,350 national security benefits to the 295 00:13:11,350 --> 00:13:13,800 general public by protecting against 296 00:13:13,810 --> 00:13:16,400 increasingly sophisticated threats in 297 00:13:16,400 --> 00:13:18,750 the supply chain . Threats to the 298 00:13:18,750 --> 00:13:20,740 United States posed by foreign 299 00:13:20,740 --> 00:13:23,110 intelligence entities are becoming more 300 00:13:23,110 --> 00:13:25,670 complex and may combine elements of 301 00:13:25,670 --> 00:13:28,860 traditional spying , economic espionage 302 00:13:28,870 --> 00:13:31,660 and supply chain and cyber operations 303 00:13:31,660 --> 00:13:33,540 to gain access to critical 304 00:13:33,540 --> 00:13:35,900 infrastructure and steal sensitive 305 00:13:35,910 --> 00:13:38,150 information and industrial secrets . 306 00:13:38,790 --> 00:13:42,550 The exploitation of key supply chains 307 00:13:42,560 --> 00:13:46,010 by foreign adversaries represents a 308 00:13:46,010 --> 00:13:48,650 complex and growing threat . 309 00:13:51,440 --> 00:13:53,530 The increasing reliance on foreign 310 00:13:53,540 --> 00:13:55,760 owned or controlled telecommunications 311 00:13:55,760 --> 00:13:58,180 equipment , such as hardware or 312 00:13:58,180 --> 00:14:01,190 software and services , as well as 313 00:14:01,190 --> 00:14:03,050 proliferation of networking 314 00:14:03,050 --> 00:14:05,070 technologies , may create 315 00:14:05,070 --> 00:14:07,950 vulnerabilities in our nation's supply 316 00:14:07,950 --> 00:14:11,300 chains . D . O D fully supports the 317 00:14:11,300 --> 00:14:14,760 intent of Section 889 but recognizes 318 00:14:14,760 --> 00:14:16,960 the implementation challenges facing 319 00:14:16,970 --> 00:14:19,990 industry partners , defense pricing and 320 00:14:19,990 --> 00:14:23,380 contracting . DPC within a N S has 321 00:14:23,380 --> 00:14:25,770 responded to congressional requests for 322 00:14:25,770 --> 00:14:28,020 technical assistance with draft resist 323 00:14:28,140 --> 00:14:31,910 revisions to section 889 to facilitate 324 00:14:31,920 --> 00:14:34,090 effective implementation and to 325 00:14:34,090 --> 00:14:36,750 preclude unintended consequences . 326 00:14:38,240 --> 00:14:41,730 Section 36 10 of the Corona virus aid 327 00:14:41,730 --> 00:14:44,170 relief and Economic Security or Cares 328 00:14:44,170 --> 00:14:47,380 Act authorizes agencies to reimburse 329 00:14:47,390 --> 00:14:50,200 any paid leave , including sick leave 330 00:14:50,420 --> 00:14:52,550 their contractor provides to keep its 331 00:14:52,550 --> 00:14:55,680 employees or subcontractor employees in 332 00:14:55,680 --> 00:14:58,590 a ready state . This includes 333 00:14:58,690 --> 00:15:00,780 protecting the life and safety of 334 00:15:00,790 --> 00:15:03,220 government and contractor personnel . 335 00:15:03,450 --> 00:15:05,500 Drawing the ongoing public health 336 00:15:05,510 --> 00:15:08,480 emergency declared for Cove in 19 on 337 00:15:08,480 --> 00:15:11,990 January 31 2020 through September 338 00:15:11,990 --> 00:15:15,910 30th . 2020 . In other words , 36 339 00:15:15,910 --> 00:15:19,230 10 Authorizes payment two companies to 340 00:15:19,230 --> 00:15:22,630 defense industrial based employees when 341 00:15:22,630 --> 00:15:24,352 they cannot work on government 342 00:15:24,352 --> 00:15:27,090 contracts . No appropriations 343 00:15:27,090 --> 00:15:28,923 accompanied the authorization to 344 00:15:28,923 --> 00:15:31,800 reimburse thes costs . D o d . 345 00:15:31,800 --> 00:15:35,040 Recognizes contractors All sizes are 346 00:15:35,040 --> 00:15:37,460 experiencing costs as a result of the 347 00:15:37,460 --> 00:15:40,160 coded 19 pandemic and are putting 348 00:15:40,160 --> 00:15:42,230 measures in place to maintain the 349 00:15:42,230 --> 00:15:45,620 health of employees . They're coated 350 00:15:45,620 --> 00:15:48,790 19 cost impacts to industry and on 351 00:15:48,790 --> 00:15:51,150 specific contracts in two broad 352 00:15:51,150 --> 00:15:55,100 categories . 1 36 10 Leave costs 353 00:15:55,240 --> 00:15:57,670 such as paid leave , including six 354 00:15:57,670 --> 00:16:00,690 leave sick leave . The contractor 355 00:16:00,690 --> 00:16:03,070 provides to keep its employees or 356 00:16:03,070 --> 00:16:06,900 subcontractors in a ready state and two 357 00:16:06,930 --> 00:16:09,820 other cove in 19 costs such as those 358 00:16:09,820 --> 00:16:11,653 incurred for personal protective 359 00:16:11,653 --> 00:16:14,060 equipment , additional deep cleaning , 360 00:16:14,110 --> 00:16:16,200 other protective measures and 361 00:16:16,200 --> 00:16:18,430 disruption cost throughout the supply 362 00:16:18,430 --> 00:16:21,520 chain . We're in the process of 363 00:16:21,520 --> 00:16:24,370 developing guidance on submitting 36 10 364 00:16:24,370 --> 00:16:27,490 reimbursement requests . Initially , we 365 00:16:27,490 --> 00:16:29,920 issued a draft document and offered 366 00:16:29,930 --> 00:16:32,290 industry the opportunity to review it . 367 00:16:32,640 --> 00:16:35,490 Industry provided over 300 comments 368 00:16:35,640 --> 00:16:38,890 comprised of 100 pages D . O . D is 369 00:16:38,890 --> 00:16:41,670 evaluating . Many were incorporated 370 00:16:41,670 --> 00:16:43,726 into the final guidance . We will be 371 00:16:43,726 --> 00:16:46,800 publishing shortly . We had a call with 372 00:16:46,810 --> 00:16:49,150 industry recently discussing how we 373 00:16:49,150 --> 00:16:51,350 have adjusted our prior draft to 374 00:16:51,350 --> 00:16:53,350 address industry concerns . 375 00:16:53,880 --> 00:16:56,000 Specifically , we have developed a 376 00:16:56,000 --> 00:16:59,300 streamlined path forward for low dollar 377 00:16:59,300 --> 00:17:03,290 value reimbursements under $2 million a 378 00:17:03,290 --> 00:17:06,370 path to settle globally at a company or 379 00:17:06,370 --> 00:17:08,700 division level that will eliminate the 380 00:17:08,700 --> 00:17:11,660 need to have proposals and negotiations 381 00:17:11,670 --> 00:17:14,450 on a contract by contract basis . 382 00:17:15,640 --> 00:17:18,130 D . O d anticipates that the cost for 383 00:17:18,130 --> 00:17:21,710 36 10 as well as other Cove in 19 costs 384 00:17:21,750 --> 00:17:23,850 would impact the defense industrial 385 00:17:23,850 --> 00:17:26,080 base . We continue to work with 386 00:17:26,080 --> 00:17:28,600 Congress to discuss the importance of 387 00:17:28,600 --> 00:17:30,710 having an appropriation . To cover 388 00:17:30,710 --> 00:17:34,040 these costs , the military services , 389 00:17:34,040 --> 00:17:36,170 defense agencies and the Office of 390 00:17:36,170 --> 00:17:39,030 General Counsel , or OGC , completed a 391 00:17:39,030 --> 00:17:41,370 review of the 36 10 reimbursement 392 00:17:41,370 --> 00:17:44,500 guidance . It will now be sent to O . M . 393 00:17:44,500 --> 00:17:47,110 B for clearance under the Paperwork 394 00:17:47,120 --> 00:17:50,620 Reduction Act as soon as we secure o . 395 00:17:50,620 --> 00:17:52,540 M B clearance , we will issue the 396 00:17:52,540 --> 00:17:56,350 policy . The Health Economic Assistance , 397 00:17:56,360 --> 00:17:58,740 Liability Protection and Schools Act 398 00:17:58,740 --> 00:18:02,020 Heels is a $1 trillion economic 399 00:18:02,020 --> 00:18:05,070 stimulus bill introduced in 2020 by the 400 00:18:05,070 --> 00:18:07,237 United States . Senate joined the Cove 401 00:18:07,237 --> 00:18:09,710 in 19 Pandemic to supplement the 402 00:18:09,720 --> 00:18:12,500 earlier Cares Act . Within the Heels 403 00:18:12,500 --> 00:18:16,190 Act , $10.8 billion is apportioned to 404 00:18:16,190 --> 00:18:19,600 the services for section 36 10 costs . 405 00:18:19,740 --> 00:18:22,510 We had an opportunity to provide a view 406 00:18:22,510 --> 00:18:25,580 on the services finding section off the 407 00:18:25,580 --> 00:18:28,720 draft act . The Defense Pricing and 408 00:18:28,720 --> 00:18:31,530 Contracting Group provided a view that 409 00:18:31,530 --> 00:18:33,490 the appropriation in addition to 410 00:18:33,490 --> 00:18:35,970 Section 36 10 paid leave costs 411 00:18:36,130 --> 00:18:38,370 mentioned in the text should also be 412 00:18:38,370 --> 00:18:41,000 extended to the other category of costs . 413 00:18:41,010 --> 00:18:44,130 Other Cove It related costs via 414 00:18:44,280 --> 00:18:46,660 reimbursements for equitable adjustment . 415 00:18:46,990 --> 00:18:49,960 It's no secret that the U A . That the 416 00:18:49,960 --> 00:18:52,530 US is it cyberwar Every day . 417 00:18:52,670 --> 00:18:55,100 Cybersecurity risks threaten the 418 00:18:55,100 --> 00:18:57,880 industrial base , national security as 419 00:18:57,880 --> 00:19:01,500 well as partners and allies at the 420 00:19:01,510 --> 00:19:04,880 end of January and s rolled out the 421 00:19:04,880 --> 00:19:06,920 cybersecurity maturity model 422 00:19:06,920 --> 00:19:10,310 certification or see MMC . The C M M . 423 00:19:10,310 --> 00:19:13,090 C is the D o d metric to measure a 424 00:19:13,090 --> 00:19:15,500 company's ability to secure its supply 425 00:19:15,500 --> 00:19:18,360 chain . Throughout the CM's EMC 426 00:19:18,360 --> 00:19:20,830 development process , the number one 427 00:19:20,830 --> 00:19:23,140 priority has been to communicate , 428 00:19:23,150 --> 00:19:25,350 communicate and communicate again . 429 00:19:25,880 --> 00:19:28,960 Industry associations , academia , the 430 00:19:28,960 --> 00:19:32,140 military services and Congress continue 431 00:19:32,140 --> 00:19:34,630 to collaborate in an effort to hear all 432 00:19:34,630 --> 00:19:37,740 concerns and suggestions now that the 433 00:19:37,740 --> 00:19:39,960 department has released the Sea MMC 434 00:19:39,960 --> 00:19:42,410 model , the focuses on the following 435 00:19:42,420 --> 00:19:45,090 implementation activities one . 436 00:19:45,230 --> 00:19:46,980 Supporting the Defense Federal 437 00:19:46,990 --> 00:19:49,520 Acquisition Regulation supplement or D 438 00:19:49,520 --> 00:19:51,350 Fars Rulemaking process 439 00:19:52,990 --> 00:19:56,140 to completing a no cost contract with 440 00:19:56,140 --> 00:19:58,310 the newly established see MMC 441 00:19:58,320 --> 00:20:01,140 accreditation body , known as the C M M 442 00:20:01,140 --> 00:20:04,860 C . Dash a B three 443 00:20:04,870 --> 00:20:07,160 Registering and training candidate . 444 00:20:07,260 --> 00:20:09,460 See MMC third party assessment 445 00:20:09,470 --> 00:20:12,640 organization assessors called C three p 446 00:20:12,640 --> 00:20:15,920 a hose four . Conducting additional 447 00:20:15,920 --> 00:20:17,960 risk reduction through see MMC 448 00:20:17,960 --> 00:20:20,780 Pathfinders and pilots and five 449 00:20:20,780 --> 00:20:23,090 developing the Sea MMC database 450 00:20:23,100 --> 00:20:25,770 infrastructure . The department is 451 00:20:25,770 --> 00:20:27,770 currently supporting the rulemaking 452 00:20:27,770 --> 00:20:30,320 process for the proposed de Fars rule 453 00:20:30,330 --> 00:20:32,950 on C MMC Implementation . The 454 00:20:32,950 --> 00:20:36,260 department and the C M M C A B also 455 00:20:36,260 --> 00:20:38,640 signed a memorandum of understanding , 456 00:20:38,640 --> 00:20:42,040 or MOU on March 23rd . The 457 00:20:42,040 --> 00:20:44,440 department issued a press release on 458 00:20:44,440 --> 00:20:48,270 June 1 regarding the signed Emma Mou 459 00:20:48,280 --> 00:20:50,930 with the C , M , M . C . A B and the 460 00:20:50,930 --> 00:20:53,740 anticipated definitive ization of a no 461 00:20:53,740 --> 00:20:57,370 cost contract in the near term . The C 462 00:20:57,370 --> 00:20:59,810 M M C A B started registering 463 00:20:59,810 --> 00:21:01,810 candidates . See MMC third party 464 00:21:01,810 --> 00:21:04,540 assessment organizations and assessors 465 00:21:04,550 --> 00:21:07,590 In late June , the C M M C A B 466 00:21:07,590 --> 00:21:09,880 conducted initial training off mock 467 00:21:09,880 --> 00:21:12,510 assessors for CMM sea levels one 468 00:21:12,510 --> 00:21:15,610 through three from June 27 through July 469 00:21:15,610 --> 00:21:19,310 1 . 2020 O . C i S O A 470 00:21:19,320 --> 00:21:21,850 and the Missile Defense Agency are 471 00:21:21,850 --> 00:21:25,030 completing a C MMC Pathfinder on an 472 00:21:25,030 --> 00:21:27,850 existing contract . The Pathfinder 473 00:21:27,850 --> 00:21:30,030 encompasses acquisition tabletop 474 00:21:30,040 --> 00:21:33,010 exercises , training of mock assessors , 475 00:21:33,240 --> 00:21:35,430 conducting mock assessments that are 476 00:21:35,430 --> 00:21:38,320 non punitive non attribution off a 477 00:21:38,320 --> 00:21:40,140 prime contractor and three 478 00:21:40,140 --> 00:21:43,260 subcontractors on an existing contract . 479 00:21:43,340 --> 00:21:46,490 And the demonstration off CMM C A B 480 00:21:46,490 --> 00:21:50,440 processes O C I S O A 481 00:21:50,450 --> 00:21:53,350 an a D o d stock Stakeholder will 482 00:21:53,350 --> 00:21:56,430 initiate a second . See MMC Pathfinder 483 00:21:56,440 --> 00:21:58,950 on an existing contract in September 484 00:21:58,950 --> 00:22:01,790 2020 that conducts additional non 485 00:22:01,790 --> 00:22:05,330 attribution non punitive moxie . MMC 486 00:22:05,330 --> 00:22:07,620 assessment for subset of the 487 00:22:07,620 --> 00:22:11,100 contractors . In 488 00:22:11,100 --> 00:22:14,900 addition , O . C . S O . A . Is 489 00:22:14,910 --> 00:22:17,790 working with the services and agencies 490 00:22:17,940 --> 00:22:20,700 toe identify new contracts for C MMC 491 00:22:20,700 --> 00:22:24,380 pilots . The's pilots will be 492 00:22:24,390 --> 00:22:27,450 implemented on new D o D contracts to 493 00:22:27,450 --> 00:22:30,870 further reduce the risk of C M M C 494 00:22:30,870 --> 00:22:33,660 phase rollout by focusing on the flow 495 00:22:33,660 --> 00:22:36,610 down of controlled unclassified 496 00:22:36,620 --> 00:22:40,620 information called Kui for Short and 497 00:22:40,630 --> 00:22:43,630 see MMC requirements through the supply 498 00:22:43,630 --> 00:22:47,350 chain and conduct of mock mock see MMC 499 00:22:47,360 --> 00:22:51,350 assessments , the Pathfinder and pilot 500 00:22:51,350 --> 00:22:53,760 assessments will not result in a sea 501 00:22:53,760 --> 00:22:57,170 MMC certification . The office of the 502 00:22:57,170 --> 00:23:00,850 CIS o r O C I . S O . A is working with 503 00:23:00,850 --> 00:23:03,450 the Defense Information Systems Agency , 504 00:23:03,460 --> 00:23:05,900 DISA Enterprise , Mission Assurance 505 00:23:05,920 --> 00:23:09,680 Support Service UM , or E Mass Program 506 00:23:09,760 --> 00:23:13,090 Management Office to develop CMM C E 507 00:23:13,090 --> 00:23:15,550 Mass , which will serve as the D . O . 508 00:23:15,550 --> 00:23:18,570 D . Database or infrastructure for C 509 00:23:18,570 --> 00:23:21,740 MMC assessment reports , certificates 510 00:23:21,750 --> 00:23:24,480 and Data Analytics . The initial 511 00:23:24,480 --> 00:23:26,424 development for this is planned to 512 00:23:26,424 --> 00:23:29,140 start this month . The certification 513 00:23:29,140 --> 00:23:31,350 body will train and credential 514 00:23:31,350 --> 00:23:33,680 candidate assessors and a credit See 515 00:23:33,680 --> 00:23:35,710 MMC third party assessment 516 00:23:35,720 --> 00:23:38,500 organizations . In fact , the first see 517 00:23:38,500 --> 00:23:40,860 MMC training course for candidate 518 00:23:40,870 --> 00:23:44,570 assessors is also on track for this 519 00:23:44,570 --> 00:23:47,700 month . August . Finally , the Sea MMC 520 00:23:47,700 --> 00:23:50,240 team is currently working with global 521 00:23:50,240 --> 00:23:53,300 partners on C MMC efforts , including 522 00:23:53,300 --> 00:23:57,000 Canada , the UK , Denmark , Italy , 523 00:23:57,060 --> 00:24:00,790 Australia , Singapore , Sweden , Poland , 524 00:24:01,040 --> 00:24:04,550 Israel and the U cybersecurity body . 525 00:24:05,590 --> 00:24:07,990 There is potential for these countries 526 00:24:07,990 --> 00:24:10,800 to adopt US standards , which is really 527 00:24:10,800 --> 00:24:14,580 very exciting . Before closing , I 528 00:24:14,580 --> 00:24:16,747 would like to take a moment to mention 529 00:24:16,747 --> 00:24:18,691 a project regarding small business 530 00:24:18,691 --> 00:24:21,430 transformation toe other than small 531 00:24:21,430 --> 00:24:24,330 business classifications . As most of 532 00:24:24,330 --> 00:24:27,280 you know , many small businesses expend 533 00:24:27,280 --> 00:24:30,100 considerable management resource is tow . 534 00:24:30,100 --> 00:24:32,440 Avoid the burdens that they would face 535 00:24:32,520 --> 00:24:34,570 if they were to lose their 536 00:24:34,570 --> 00:24:37,500 qualification . As a small business , 537 00:24:38,680 --> 00:24:42,080 as the revenue or employees growth 538 00:24:42,080 --> 00:24:44,190 surpasses the limit for their 539 00:24:44,190 --> 00:24:47,160 particular naics code , these small 540 00:24:47,160 --> 00:24:49,610 businesses risk losing the majority of 541 00:24:49,610 --> 00:24:51,650 their work that stems from small 542 00:24:51,650 --> 00:24:53,850 business set asides drawing their 543 00:24:53,850 --> 00:24:56,980 transition of the 544 00:24:56,980 --> 00:25:00,650 1013 North American Industry 545 00:25:00,650 --> 00:25:03,450 Classification System , or Next codes . 546 00:25:03,680 --> 00:25:07,380 553 use an annual revenue 547 00:25:07,380 --> 00:25:09,780 standard , or threshold , making it 548 00:25:09,780 --> 00:25:11,890 challenging for small businesses to 549 00:25:11,890 --> 00:25:13,900 manage growth , especially for 550 00:25:13,900 --> 00:25:16,180 companies who conduct business that 551 00:25:16,190 --> 00:25:19,160 falls into more than one makes codes . 552 00:25:20,540 --> 00:25:23,180 Our industry Industrial Policy team 553 00:25:23,360 --> 00:25:26,100 participated in a trade industry call 554 00:25:26,110 --> 00:25:29,230 on August 5th , where small business 555 00:25:29,230 --> 00:25:31,940 growth management was raised . We are 556 00:25:31,940 --> 00:25:34,380 working with the trade associations as 557 00:25:34,380 --> 00:25:37,300 we move forward to collaborate with the 558 00:25:37,310 --> 00:25:39,350 interagency toe address . Small 559 00:25:39,350 --> 00:25:43,280 business concerns enclosing the 560 00:25:43,280 --> 00:25:46,170 D . O . D acquisition system provides 561 00:25:46,180 --> 00:25:50,120 over $320 billion annually . TOE 562 00:25:50,120 --> 00:25:52,170 are partners in national security . 563 00:25:52,480 --> 00:25:55,230 Many of those partners are service 564 00:25:55,230 --> 00:25:58,890 contractors . Service contractors play 565 00:25:58,890 --> 00:26:01,270 a key role in cyber resiliency 566 00:26:01,270 --> 00:26:03,810 assessments Across the department 567 00:26:04,440 --> 00:26:06,870 between the office of the 568 00:26:06,870 --> 00:26:09,280 undersecretary of defense for 569 00:26:09,280 --> 00:26:11,500 acquisition and sustainment and 570 00:26:11,500 --> 00:26:15,010 services , contractors have been key in 571 00:26:15,020 --> 00:26:17,600 integration of weapons system and 572 00:26:17,600 --> 00:26:19,740 critical infrastructure cyber 573 00:26:19,740 --> 00:26:23,350 assessments translating this risk to 574 00:26:23,350 --> 00:26:26,260 combat combatant commander missions . 575 00:26:27,580 --> 00:26:30,720 In doing so , service contractors also 576 00:26:30,720 --> 00:26:34,000 play a key role in the cyber resiliency 577 00:26:34,020 --> 00:26:35,950 of the defense . Industrial base 578 00:26:36,980 --> 00:26:38,860 service contractors have helped 579 00:26:38,860 --> 00:26:40,970 translate and integrate existing 580 00:26:40,970 --> 00:26:43,060 standards , such as the National 581 00:26:43,060 --> 00:26:45,390 Institute of Standards and Technology 582 00:26:45,480 --> 00:26:49,480 NIST number 171 into a viable 583 00:26:49,480 --> 00:26:52,040 certification program called the Cyber 584 00:26:52,040 --> 00:26:54,262 Maturity Model Certification that we've 585 00:26:54,262 --> 00:26:57,040 been talking about or see MMC . I'm 586 00:26:57,040 --> 00:26:59,520 incredibly proud of the efforts of D . 587 00:26:59,520 --> 00:27:02,170 O D service contractors and their 588 00:27:02,170 --> 00:27:04,520 contributions to help mitigate the 589 00:27:04,530 --> 00:27:07,750 impact of the ongoing cove . It 19 590 00:27:07,750 --> 00:27:10,890 crisis implementation of a D . O . D 591 00:27:10,890 --> 00:27:13,880 Service Partner Tool prevented an 592 00:27:13,890 --> 00:27:17,140 estimated $500 million from going toe 593 00:27:17,140 --> 00:27:19,362 our adversaries to purchase counterfeit 594 00:27:19,362 --> 00:27:21,850 products , reduced fraudulent orders 595 00:27:21,850 --> 00:27:24,350 for product that never existed and 596 00:27:24,350 --> 00:27:27,260 eliminated price gouging from suppliers . 597 00:27:28,080 --> 00:27:30,860 The tool was instrumental in assisting 598 00:27:31,020 --> 00:27:33,270 the Federal Emergency Management 599 00:27:33,280 --> 00:27:36,770 Agencies or FEMA's Cove in 19 600 00:27:36,860 --> 00:27:39,780 task force to provide mission critical 601 00:27:39,910 --> 00:27:43,370 delivery of ventilators , testing kits 602 00:27:43,380 --> 00:27:46,110 and pharmaceuticals by vetting and 603 00:27:46,110 --> 00:27:48,570 consolidating sources of supply , 604 00:27:48,730 --> 00:27:51,520 predicting capacity requirements and 605 00:27:51,520 --> 00:27:54,350 thorning adversarial influence . 606 00:27:55,640 --> 00:27:58,240 Most importantly , our ability to use 607 00:27:58,240 --> 00:28:01,050 contractors to support an interagency 608 00:28:01,050 --> 00:28:03,900 coalition save lives and ensured our 609 00:28:03,900 --> 00:28:06,420 frontline workers have the protective 610 00:28:06,430 --> 00:28:08,730 gear they needed during the height of 611 00:28:08,730 --> 00:28:11,200 the crisis and well into the future . 612 00:28:12,040 --> 00:28:14,262 With that , I want to thank you for the 613 00:28:14,262 --> 00:28:16,318 opportunity to address you . Today . 614 00:28:16,840 --> 00:28:18,951 I'll turn it over to you , Dave , for 615 00:28:18,951 --> 00:28:22,840 questions . Thank you , Madam Secretary , 616 00:28:22,850 --> 00:28:24,850 for sharing all those thoughts with 617 00:28:24,850 --> 00:28:26,950 very good survey of a wide array of 618 00:28:26,960 --> 00:28:29,293 efforts that you've had under way . And , 619 00:28:29,293 --> 00:28:31,516 of course , you've been most generous . 620 00:28:31,516 --> 00:28:33,516 Not only with your time here , it's 621 00:28:33,516 --> 00:28:35,682 morning with us , but overall in terms 622 00:28:35,682 --> 00:28:37,627 of working with with PSC and and I 623 00:28:37,627 --> 00:28:39,571 remember companies as well as some 624 00:28:39,571 --> 00:28:41,793 other associations and making sure that 625 00:28:41,793 --> 00:28:41,770 that dialogue on all these issues have 626 00:28:41,780 --> 00:28:44,860 been very robust in ongoing There've 627 00:28:44,860 --> 00:28:47,082 been a number of questions come in . If 628 00:28:47,082 --> 00:28:49,249 you got a couple of minutes , I'd like 629 00:28:49,249 --> 00:28:51,304 Teoh bring a few of them up for your 630 00:28:51,304 --> 00:28:52,971 consideration on the adaptive 631 00:28:52,971 --> 00:28:55,830 acquisition framework we push out to 632 00:28:55,830 --> 00:28:57,790 our members as you issue these new 633 00:28:57,790 --> 00:29:00,000 policy memos and then ultimately , the 634 00:29:00,000 --> 00:29:02,580 D O D instructions . What are you doing 635 00:29:02,590 --> 00:29:05,330 internally ? You mentioned Eau earlier 636 00:29:05,330 --> 00:29:07,330 on the software side . What are you 637 00:29:07,330 --> 00:29:09,274 doing internally to move these out 638 00:29:09,274 --> 00:29:11,441 there ? As you well know , most people 639 00:29:11,441 --> 00:29:13,552 don't get up in the morning and say , 640 00:29:13,552 --> 00:29:12,810 Is there another memo from your 641 00:29:12,810 --> 00:29:14,977 undersecretary , right ? Yeah . How do 642 00:29:14,977 --> 00:29:16,921 you push this out ? So it's in the 643 00:29:16,921 --> 00:29:18,921 program of the tens of thousands of 644 00:29:18,921 --> 00:29:20,754 program officers and contracting 645 00:29:20,754 --> 00:29:22,532 officers out . We communicate , 646 00:29:22,532 --> 00:29:24,588 communicate , communicate . And I do 647 00:29:24,588 --> 00:29:26,900 that a variety of ways . Um , I talk 648 00:29:26,900 --> 00:29:29,590 about this at the Secretary of 649 00:29:29,590 --> 00:29:31,970 Defense's staff meeting where we are . 650 00:29:32,040 --> 00:29:34,970 So the senior leadership team knows 651 00:29:34,980 --> 00:29:37,410 what we're doing . Obviously , my 652 00:29:37,410 --> 00:29:41,110 entire team . Kevin Fahey , Stacy 653 00:29:41,110 --> 00:29:44,290 Cummings . Ah , whole number of people 654 00:29:44,300 --> 00:29:47,180 are constantly reaching out and meeting 655 00:29:47,180 --> 00:29:49,870 with the service action officers to 656 00:29:49,870 --> 00:29:52,550 make sure that what we're doing is 657 00:29:52,550 --> 00:29:54,661 meeting the mark , so to speak , that 658 00:29:54,661 --> 00:29:57,630 it's usable that it's clear we put 659 00:29:57,630 --> 00:30:00,990 together all kinds of easy reference 660 00:30:00,990 --> 00:30:03,046 materials . For instance , one of my 661 00:30:03,046 --> 00:30:05,390 favorite trifles , which we hand out 662 00:30:05,400 --> 00:30:07,950 all the time show hasn't quick 663 00:30:08,040 --> 00:30:10,940 reference here as to what the pathways 664 00:30:10,940 --> 00:30:14,520 are We are training in de au , 665 00:30:14,710 --> 00:30:17,900 both through real time 666 00:30:18,170 --> 00:30:20,930 processes , getting out , talking about 667 00:30:20,930 --> 00:30:23,020 the different pathways as well as 668 00:30:23,020 --> 00:30:26,040 having workshops . I also meet bi 669 00:30:26,040 --> 00:30:28,040 weekly with the service acquisition 670 00:30:28,040 --> 00:30:30,580 executives , and we brief them on an 671 00:30:30,580 --> 00:30:33,030 ongoing basis . And this is a two way 672 00:30:33,030 --> 00:30:36,140 conversation we wanna learn as we go . 673 00:30:36,290 --> 00:30:39,050 Most importantly , we have Pathfinder 674 00:30:39,050 --> 00:30:42,660 projects to continue toe work with it . 675 00:30:42,770 --> 00:30:46,340 We also under our acquisition enablers 676 00:30:46,340 --> 00:30:50,060 team in , um ASD acquisition . We 677 00:30:50,060 --> 00:30:52,390 have Dave Cadman and the team holding 678 00:30:52,390 --> 00:30:54,920 regular meetings with all the 679 00:30:54,930 --> 00:30:57,890 functional groups , all the agencies , 680 00:30:57,900 --> 00:31:00,570 all the services where we talk about 681 00:31:00,570 --> 00:31:02,930 where we are and what needs to be done . 682 00:31:03,090 --> 00:31:04,979 This is , ah , highly coordinated 683 00:31:04,979 --> 00:31:07,880 process that , frankly goes through are 684 00:31:07,880 --> 00:31:11,630 formidable , very formal coordination 685 00:31:11,630 --> 00:31:14,610 process in the building . So everything 686 00:31:14,610 --> 00:31:17,100 is actually signed off . But we need to 687 00:31:17,100 --> 00:31:19,420 tell our stories about how it is 688 00:31:19,420 --> 00:31:21,740 speeding up acquisition . I think each 689 00:31:21,740 --> 00:31:24,720 of the services are doing that . In 690 00:31:24,720 --> 00:31:27,280 fact , just one final comment on that I 691 00:31:27,280 --> 00:31:29,660 had the opportunity earlier this week 692 00:31:29,690 --> 00:31:32,040 to sit down with General Siku Brown , 693 00:31:32,040 --> 00:31:33,929 who I think is everybody knows is 694 00:31:33,929 --> 00:31:36,100 taking over as chief of staff of the 695 00:31:36,110 --> 00:31:38,680 Air Force . I'm sick use an operator , 696 00:31:38,690 --> 00:31:42,080 and in my discussions with him I said , 697 00:31:42,080 --> 00:31:44,136 Listen , I just really would like to 698 00:31:44,136 --> 00:31:46,136 talk about the adaptive acquisition 699 00:31:46,136 --> 00:31:48,413 Workforce he said . Oh , I went to D A . 700 00:31:48,413 --> 00:31:50,469 You for a four hour primer just so I 701 00:31:50,469 --> 00:31:52,524 would know what was going on . And I 702 00:31:52,524 --> 00:31:54,302 was so excited that he made the 703 00:31:54,302 --> 00:31:56,570 connection between getting capability 704 00:31:56,570 --> 00:31:58,530 down range to the warfighter more 705 00:31:58,530 --> 00:32:00,530 quickly and what we were doing with 706 00:32:00,530 --> 00:32:02,641 middle tier acquisition and a variety 707 00:32:02,641 --> 00:32:04,641 of other things . So that's what we 708 00:32:04,641 --> 00:32:06,808 need . We need the users to understand 709 00:32:06,808 --> 00:32:09,610 the tools we have and our acquisition 710 00:32:09,610 --> 00:32:11,832 professionals , whether they be program 711 00:32:11,832 --> 00:32:14,770 managers or contracting officers to be 712 00:32:14,770 --> 00:32:17,750 creatively compliant , not be scared to 713 00:32:17,750 --> 00:32:19,861 get out there and try something new , 714 00:32:20,740 --> 00:32:22,962 Thank you very much . And we appreciate 715 00:32:22,962 --> 00:32:25,073 those efforts . And , of course , you 716 00:32:25,073 --> 00:32:27,296 mentioned Stacy Cummings , Dave Cabin . 717 00:32:27,296 --> 00:32:29,407 We've hosted them before and actually 718 00:32:29,407 --> 00:32:31,462 would probably like to have him back 719 00:32:31,462 --> 00:32:33,518 for another round , on particular on 720 00:32:33,518 --> 00:32:35,573 the software update before it before 721 00:32:35,573 --> 00:32:37,518 it's finalized and promulgated . I 722 00:32:37,518 --> 00:32:39,684 think there's a lot of progress we can 723 00:32:39,684 --> 00:32:41,851 make in that regard . Yeah , In fact , 724 00:32:41,851 --> 00:32:44,670 Tori Cough , who works as one of our 725 00:32:45,240 --> 00:32:47,940 key members of the team has really been 726 00:32:47,940 --> 00:32:50,990 focusing on how you do the contracting 727 00:32:50,990 --> 00:32:53,580 for that as well . Eso we should have 728 00:32:53,580 --> 00:32:55,247 her as part of that as well . 729 00:32:55,247 --> 00:32:57,524 Absolutely as you well know . You know , 730 00:32:57,524 --> 00:33:00,200 most of industry doesn't buy software 731 00:33:00,370 --> 00:33:02,148 through labour hours and labour 732 00:33:02,148 --> 00:33:04,259 categories . They buy it by results , 733 00:33:04,259 --> 00:33:06,481 but all too often , D o . D is still in 734 00:33:06,481 --> 00:33:08,314 fact procuring input rather than 735 00:33:08,314 --> 00:33:10,481 results . And so I think those changes 736 00:33:10,481 --> 00:33:12,648 would be very welcome for us . Great . 737 00:33:12,648 --> 00:33:14,814 Let me talk a little bit about section 738 00:33:14,814 --> 00:33:14,510 89 b , and you mentioned the interim 739 00:33:14,510 --> 00:33:16,950 rule . Andi initial efforts . It is two 740 00:33:16,950 --> 00:33:19,006 part question here . One is what are 741 00:33:19,006 --> 00:33:21,117 you doing to make sure contracts were 742 00:33:21,117 --> 00:33:23,283 still awarded on O D o . D has put out 743 00:33:23,283 --> 00:33:23,210 guidance . But again , not everybody 744 00:33:23,210 --> 00:33:25,154 wakes up in the morning and says , 745 00:33:25,154 --> 00:33:27,043 What's the latest memo ? Ham . In 746 00:33:27,043 --> 00:33:29,210 addition , not you , noted the comment 747 00:33:29,210 --> 00:33:31,321 period , you know , ah , comments for 748 00:33:31,321 --> 00:33:33,488 the interim rule , even though it's in 749 00:33:33,488 --> 00:33:35,543 in rule and takes effect today . The 750 00:33:35,543 --> 00:33:34,900 comment period is still open for 751 00:33:34,900 --> 00:33:37,122 another month , and one of things we do 752 00:33:37,122 --> 00:33:39,760 at PSC is we watch the results of the 753 00:33:39,760 --> 00:33:41,982 initial implementation . We incorporate 754 00:33:41,982 --> 00:33:43,982 those into our comments We had some 755 00:33:43,982 --> 00:33:46,149 success back on Section A last year in 756 00:33:46,149 --> 00:33:48,093 terms of getting the final rule be 757 00:33:48,093 --> 00:33:50,149 improved from the interim rule . How 758 00:33:50,149 --> 00:33:52,010 can we work with D o . D on your 759 00:33:52,010 --> 00:33:54,066 initial results ? First of all , how 760 00:33:54,066 --> 00:33:56,010 you make ensure contract still get 761 00:33:56,010 --> 00:33:57,954 awarded . And how can we work with 762 00:33:57,954 --> 00:34:00,010 whatever initial results pop up from 763 00:34:00,010 --> 00:34:02,232 this implementation to make sure we can 764 00:34:02,232 --> 00:34:04,343 reflect those in our comments a month 765 00:34:04,343 --> 00:34:06,566 from now ? So we have a dynamic tension 766 00:34:06,566 --> 00:34:08,677 here . Obviously , it's challenging , 767 00:34:08,677 --> 00:34:10,621 changing . A lot of contracts were 768 00:34:10,621 --> 00:34:13,780 trying to be able to do class changes . 769 00:34:13,780 --> 00:34:16,670 I'm still working on that . We also 770 00:34:16,670 --> 00:34:18,503 have Kim Harrington and the team 771 00:34:18,600 --> 00:34:20,390 spending ah , lot of time with 772 00:34:20,390 --> 00:34:23,960 contracting officers trying to get them 773 00:34:24,040 --> 00:34:26,540 to incorporate changes into contracts 774 00:34:26,540 --> 00:34:29,970 before , um , you know , everything 775 00:34:29,970 --> 00:34:33,680 goes live here August 13th . But 776 00:34:33,690 --> 00:34:36,740 most importantly , we need feedback , 777 00:34:36,750 --> 00:34:38,417 and that's where the industry 778 00:34:38,417 --> 00:34:41,500 associations are absolutely invaluable 779 00:34:41,610 --> 00:34:45,360 to us . What we want is we need to hear 780 00:34:45,360 --> 00:34:47,620 we want to listen to what's going well 781 00:34:47,630 --> 00:34:49,620 and what's not . What you could 782 00:34:49,630 --> 00:34:52,580 personally do is make sure that you 783 00:34:52,580 --> 00:34:54,950 have the infrastructure , if you will , 784 00:34:55,080 --> 00:34:58,120 to gather that information above and 785 00:34:58,120 --> 00:35:00,440 beyond what we get from individual 786 00:35:00,440 --> 00:35:02,496 contracting officers . With industry 787 00:35:02,496 --> 00:35:04,930 coming back on individual contracts and 788 00:35:04,930 --> 00:35:07,740 tell us what the biggest challenges are , 789 00:35:07,840 --> 00:35:10,062 what's working , what's not working . I 790 00:35:10,062 --> 00:35:12,730 know we're all aligned in that we do 791 00:35:12,730 --> 00:35:15,130 not want adversaries in our supply 792 00:35:15,130 --> 00:35:17,297 chain . We don't want further theft of 793 00:35:17,297 --> 00:35:19,408 intellectual property . We don't want 794 00:35:19,408 --> 00:35:22,740 these nefarious actions going on . But 795 00:35:22,750 --> 00:35:25,310 how do we get the language into the 796 00:35:25,310 --> 00:35:27,254 contracts ? How do we practice the 797 00:35:27,254 --> 00:35:30,190 behaviors of ensuring we understand 798 00:35:30,190 --> 00:35:32,360 what we have in our supply chains for 799 00:35:32,360 --> 00:35:35,360 telecommunications equipment on and so 800 00:35:35,360 --> 00:35:38,750 forth ? What we need to do is continue 801 00:35:38,750 --> 00:35:41,150 to hear from you to the degree which 802 00:35:41,150 --> 00:35:44,350 you can organize that information 803 00:35:44,350 --> 00:35:47,780 coming back give it to us in a format 804 00:35:47,780 --> 00:35:50,130 where it's aggregated under major 805 00:35:50,130 --> 00:35:53,110 themes than with specific proof points 806 00:35:53,220 --> 00:35:55,410 to support each of those themes . 807 00:35:55,540 --> 00:35:57,730 That's what would work really , really 808 00:35:57,730 --> 00:35:59,897 well . And I know Kim Harrington would 809 00:35:59,897 --> 00:36:02,710 be incredibly appreciative . We will 810 00:36:02,710 --> 00:36:04,766 certainly undertake to do that . You 811 00:36:04,766 --> 00:36:06,988 mentioned earlier the comments that you 812 00:36:06,988 --> 00:36:09,210 receive from industry on the initial 30 813 00:36:09,210 --> 00:36:11,266 16 reimbursement guidance right . We 814 00:36:11,266 --> 00:36:13,543 have three days to turn those comments . 815 00:36:13,543 --> 00:36:15,654 Around 12 of those 100 pages that you 816 00:36:15,654 --> 00:36:17,543 mentioned came from PSE and we're 817 00:36:17,543 --> 00:36:19,766 organized with our members to make sure 818 00:36:19,766 --> 00:36:21,932 we do that on 89 b s . Well , so thank 819 00:36:21,932 --> 00:36:23,932 you very much for that . Yeah , and 820 00:36:23,932 --> 00:36:26,043 I'll tell you is just briefly what we 821 00:36:26,043 --> 00:36:28,210 do with that . That's not only for our 822 00:36:28,210 --> 00:36:30,432 own information and interest , but that 823 00:36:30,432 --> 00:36:32,488 allows us to take it to Congress and 824 00:36:32,488 --> 00:36:35,610 give them proof points on things we've 825 00:36:35,620 --> 00:36:37,900 been saying , but perhaps sound a 826 00:36:37,900 --> 00:36:40,560 little anecdotal coming from those of 827 00:36:40,560 --> 00:36:43,430 us within D o d . But when we have 828 00:36:43,430 --> 00:36:45,960 those real life examples , it's very , 829 00:36:45,960 --> 00:36:48,130 very helpful . Thank you . We know 830 00:36:48,130 --> 00:36:50,241 you're using them . It makes it a lot 831 00:36:50,241 --> 00:36:52,130 easier for us to collect them and 832 00:36:52,130 --> 00:36:51,720 aggregate them . And of course , we 833 00:36:51,720 --> 00:36:53,720 anonymous him so that no individual 834 00:36:53,720 --> 00:36:55,831 company is putting themselves at risk 835 00:36:55,831 --> 00:36:57,940 by may be making a negative comment 836 00:36:57,940 --> 00:37:00,162 about something that might be happening 837 00:37:00,162 --> 00:37:02,162 inside the department Exactly , and 838 00:37:02,162 --> 00:37:04,273 that's a huge , huge benefit that the 839 00:37:04,273 --> 00:37:06,329 industry association served . So one 840 00:37:06,329 --> 00:37:08,218 final question you mentioned , of 841 00:37:08,218 --> 00:37:10,273 course , 30 16 and we already talked 842 00:37:10,273 --> 00:37:12,384 about that . There's also a couple of 843 00:37:12,384 --> 00:37:14,607 questions on you did issue a memorandum 844 00:37:14,607 --> 00:37:16,496 on progress payments , increasing 845 00:37:16,496 --> 00:37:18,329 progress payments both for small 846 00:37:18,329 --> 00:37:20,496 businesses and for larger businesses , 847 00:37:20,496 --> 00:37:22,718 and I know that that memorandum extends 848 00:37:22,718 --> 00:37:24,607 the change indefinitely , right ? 849 00:37:24,607 --> 00:37:26,829 There's no in date to it . But , as you 850 00:37:26,829 --> 00:37:28,996 well know increasingly are . Companies 851 00:37:28,996 --> 00:37:31,640 depend upon the financial sector for 852 00:37:31,650 --> 00:37:33,761 everything we do day to day , right ? 853 00:37:33,761 --> 00:37:35,761 And everything the financial sector 854 00:37:35,761 --> 00:37:37,983 does is they want certainty . They want 855 00:37:37,983 --> 00:37:39,928 something that they can build into 856 00:37:39,928 --> 00:37:41,928 their models . Right and indefinite 857 00:37:41,928 --> 00:37:44,261 doesn't fit the definition of certainty . 858 00:37:44,261 --> 00:37:46,880 What would you need tohave to consider 859 00:37:47,030 --> 00:37:49,480 making that guidance on progress 860 00:37:49,480 --> 00:37:52,170 payments not be indefinite anymore , 861 00:37:52,170 --> 00:37:54,170 but being the permanent , that is , 862 00:37:54,170 --> 00:37:56,337 until it changes again . You know , we 863 00:37:56,337 --> 00:37:58,281 do change progress payments . What 864 00:37:58,281 --> 00:38:00,503 would it take for you to consider doing 865 00:38:00,503 --> 00:38:02,392 that data data data with the only 866 00:38:02,392 --> 00:38:05,570 criticism we get in terms of changing 867 00:38:05,570 --> 00:38:08,740 the progress payments is a perception 868 00:38:08,890 --> 00:38:12,560 that it primarily benefits large 869 00:38:12,560 --> 00:38:15,990 primes . And it doesn't benefit small 870 00:38:15,990 --> 00:38:18,420 companies . We can have the large 871 00:38:18,420 --> 00:38:21,210 primes talk about flowing down progress 872 00:38:21,210 --> 00:38:24,530 payments . How much cash is moving that 873 00:38:24,530 --> 00:38:27,390 half of the equation ? What we need is 874 00:38:27,390 --> 00:38:29,710 the feedback from the smalls , 875 00:38:29,720 --> 00:38:31,810 especially as well as mid tier 876 00:38:31,810 --> 00:38:34,690 companies saying this was flowed down , 877 00:38:34,690 --> 00:38:37,300 tow us . We received it . It made a 878 00:38:37,300 --> 00:38:40,400 difference . It saved jobs . It kept us 879 00:38:40,410 --> 00:38:43,320 are small company being part of the 880 00:38:43,320 --> 00:38:45,670 defense industrial base . If you could 881 00:38:45,670 --> 00:38:47,960 gather that , that would be immensely 882 00:38:47,960 --> 00:38:50,250 helpful . We'll undertake that as well . 883 00:38:50,250 --> 00:38:51,861 I'm taking a lot of homework 884 00:38:51,861 --> 00:38:54,194 assignments away from this conversation , 885 00:38:54,194 --> 00:38:56,306 So thank you . It's a piker ship . In 886 00:38:56,306 --> 00:38:58,306 one final point , you mentioned the 887 00:38:58,306 --> 00:39:00,472 small business on and you know it is . 888 00:39:00,480 --> 00:39:03,900 It is Teoh us . Ah ah , riel . Sad 889 00:39:03,900 --> 00:39:06,370 thing that the only place in America 890 00:39:06,380 --> 00:39:08,870 where our public policy punishes 891 00:39:08,870 --> 00:39:11,060 economic growth is in the small 892 00:39:11,060 --> 00:39:13,171 business set aside world where if you 893 00:39:13,171 --> 00:39:15,393 grow , you lose , right ? PSC undertook 894 00:39:15,393 --> 00:39:17,338 some work on this Ah , a couple of 895 00:39:17,338 --> 00:39:19,227 years back and were provided that 896 00:39:19,227 --> 00:39:21,282 information to your staff already on 897 00:39:21,282 --> 00:39:23,393 this where we showed that basically , 898 00:39:23,393 --> 00:39:23,320 if you graduate from the a day set 899 00:39:23,320 --> 00:39:27,180 aside program a decade later , 60% 900 00:39:27,210 --> 00:39:29,377 of the companies that were under a day 901 00:39:29,377 --> 00:39:31,543 are no longer getting government prime 902 00:39:31,543 --> 00:39:33,432 contracts and the 40% that are on 903 00:39:33,432 --> 00:39:35,488 average or getting smaller contracts 904 00:39:35,488 --> 00:39:37,710 and they were getting when they were in 905 00:39:37,710 --> 00:39:39,710 the set of Piper . We need a policy 906 00:39:39,710 --> 00:39:41,599 that promotes growth that rewards 907 00:39:41,599 --> 00:39:43,766 growth rather than punishes growth and 908 00:39:43,766 --> 00:39:45,821 makes it impossible for companies to 909 00:39:45,821 --> 00:39:47,766 succeed . So we really applaud you 910 00:39:47,766 --> 00:39:47,710 doing that and we'll work with you 911 00:39:47,720 --> 00:39:49,498 going forward . Excellent . Amy 912 00:39:49,498 --> 00:39:51,730 Murray's the point of contact under 913 00:39:51,730 --> 00:39:55,030 industrial policy , So I fully well 914 00:39:55,030 --> 00:39:57,350 realized that this is an interagency 915 00:39:57,350 --> 00:40:00,200 problem . But defense , I think , can 916 00:40:00,200 --> 00:40:02,700 be a huge advocate and perhaps try to 917 00:40:02,700 --> 00:40:04,867 drive some changes . One of the things 918 00:40:04,867 --> 00:40:06,978 that we know in the acquisition world 919 00:40:06,978 --> 00:40:09,089 is that if we can get it d o . D . To 920 00:40:09,089 --> 00:40:11,311 make the change , we can move it to the 921 00:40:11,311 --> 00:40:13,589 rest of the federal government as well . 922 00:40:13,589 --> 00:40:15,700 And so , having us the bellwether and 923 00:40:15,700 --> 00:40:15,310 the leader on this , it will make a 924 00:40:15,310 --> 00:40:17,366 great deal of difference . And we'll 925 00:40:17,366 --> 00:40:19,588 work carefully with you . Miss Lord , I 926 00:40:19,588 --> 00:40:21,810 want to thank you for spending the time 927 00:40:21,810 --> 00:40:20,820 with this today . You've been very , 928 00:40:20,820 --> 00:40:22,987 very insightful and very generous with 929 00:40:22,987 --> 00:40:25,280 both your time today , but also with 930 00:40:25,280 --> 00:40:27,447 that partnership in collaboration with 931 00:40:27,447 --> 00:40:29,280 PSE and the other association to 932 00:40:29,280 --> 00:40:31,447 represent our industry is you see , as 933 00:40:31,447 --> 00:40:33,280 you know , our folks are just is 934 00:40:33,280 --> 00:40:35,447 committed to mission success , justice 935 00:40:35,447 --> 00:40:37,558 commissioned , committed to readiness 936 00:40:37,558 --> 00:40:39,669 and sustainability around the world . 937 00:40:39,669 --> 00:40:41,613 Justice committed to defending the 938 00:40:41,613 --> 00:40:43,836 freedom of America as the men and women 939 00:40:43,836 --> 00:40:45,891 in uniform and the federal civilians 940 00:40:45,891 --> 00:40:45,370 Did you have working there . In fact , 941 00:40:45,380 --> 00:40:47,436 many of us came from there , right ? 942 00:40:47,436 --> 00:40:49,547 And so all that commitment is there . 943 00:40:49,547 --> 00:40:51,713 You keep building on it , were at your 944 00:40:51,713 --> 00:40:53,936 side and working with you all the way . 945 00:40:53,936 --> 00:40:56,158 So thank you so much . We're gonna take 946 00:40:56,158 --> 00:40:58,491 a 10 minute break now and we'll see you . 947 00:40:58,491 --> 00:41:00,547 The audience back here for the first 948 00:41:00,547 --> 00:41:02,713 panel , which actually picks up nicely 949 00:41:02,713 --> 00:41:04,880 from the comments . One accelerating D 950 00:41:04,880 --> 00:41:06,880 o d . Modernization through digital 951 00:41:06,880 --> 00:41:09,047 transformation . Thank you very much . 952 00:41:09,047 --> 00:41:08,820 Thank you , Miss Lord . Thank you .